In an interview, BOJ board member Sato Ayano (佐藤綾野) indicated that future rate hikes would be decided gradually after assessing trends in consumption and income, and explained the reasons for opposing a rate hike at the September meeting.
BOJ board member Sato Ayano (佐藤綾野) said that she opposed a rate hike at the September monetary policy meeting. She cited the lack of sufficient momentum in private consumption and the fact that, although the underlying inflation rate has been rising gradually, no rapid increase has emerged.
Regarding future rate hikes, she supported gradual adjustments based on the view that current financial conditions remain accommodative, while indicating that the timing of any rate hike would be decided after assessing trends in consumption and income.
On the appropriate pace of rate hikes, she said she was not committed to any specific schedule, such as once every 6 months or once every 3 months. Regarding the relationship between the government’s expansionary fiscal policy and the BOJ’s monetary policy, she expressed the view that consistency should be achieved by making monetary policy decisions independently.
Regarding the outlook for prices, she said that both upside and downside outcomes were possible. She indicated that higher crude oil prices resulting from heightened tensions in the Middle East could increase upside risks, while a prolonged conflict that causes the economy to deteriorate could lead to downside risks.